Celsius Estate Sues BitMEX for Return of 6,360 Bitcoin Ahead of Shutdown

Forecast Trend Report by Period

The bankruptcy estate of crypto lender Celsius has sued BitMEX, alleging the exchange carried out an improper liquidation and manipulated prices during the cryptocurrency market crash in 2020.

Cointelegraph reported on September 16 that the Celsius estate recently filed a complaint in U.S. Bankruptcy Court in New York against five BitMEX-affiliated entities, including HDR Global Trading, ABS Global Trading and HDR Global Services. The suit was filed by the Blockchain Recovery Investment Consortium, or BRIC, acting on behalf of the estate.

The estate alleges that BitMEX improperly liquidated Celsius positions in March 2020 and seized collateral of about 1,326 Bitcoin. It also claims that investment fund JST's position was liquidated the following day, resulting in an additional loss of about 5,034 Bitcoin. JST later assigned the related claims to the estate.

The estate is seeking the return of about 6,360 Bitcoin. It is also seeking punitive damages, unjust enrichment and litigation costs.

The lawsuit was filed ahead of BitMEX's planned closure. The exchange plans to halt operations on September 23.